The quality of the chips is bad, Sony has cut its sales target for the PlayStation 5

ILUSTRASI. Playstation 5. SONY INTERACTIVE ENTERTAINMENT INC./Handout via REUTERS ATTENTION EDITORS – THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY. MANDATORY CREDIT. NO RESALES. NO ARCHIVES. MUST CREDIT ©SONY INTERACTIVE ENTERTAINMENT INC. DESIGN AND SPECIFICATION

Reporter: Fencing Septiadi | Editor: Tendi Mahadi

KONTAN.CO.ID – TOKYO. Sony Corp. has cut its PlayStation 5 sales target for this year to 4 million units from the previous target of 11 million units. The reason is, there are problems related to the design of the new chip system that is being produced.

Launch Bloomberg, Tuesday (15/9), since July Sony has placed a large order with chip suppliers in anticipation of a surge in demand for consoles during the pandemic.

Unfortunately, Sony’s intention to boost production is to make the quality of the chips even at a level of 50% below standard. “If the news is true, then reducing the target could be a bad thing,” said Ezawa City Citigroup Analyst.

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He added, the decline in the quality of the chips produced could also increase Sony’s production costs, and ultimately cut profit margins. The city also estimates that the target could even decrease again in March 2021.

This year, Sony actually started production conservatively, and was constrained by the selling price. However, along with the pandemic which limited the mobility of people, Sony has increasingly spurred production. For example, this is driven by the rapid increase in the subscription service to PlayStation Plus.

As for a number of Sony rivals, such as Microsoft last week also just released the price of its new Xbox Series S console at US $ 299, and the Xbox Series X at US $ 499. Orders for the new Xbox series will begin on September 22, 2020,

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The price offered by Microsoft is competitive enough to put pressure on Sony to immediately release an official price for the PlayStation 5. Bloomberg Intelligence Analyst Masahiro Wakasugi estimates that the PlayStation 5 price will be around US $ 400-459.

Meanwhile, another player, Nintendo Co, is now planning to update the Switch version with better components, and could potentially deliver video output at 4K resolution.




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